Advantages of Mixed- Use Buildings
Investors in real estate have diversified the types of buildings that they want to construct. People are finding mixed-use property as a worthy investment. Mixed use buildings comprise of residential and commercial buildings. The construction of mixed-use property requires lots of finances so investors can apply for loans from reputable companies. It is crucial for the borrowers to have a good credit history so they should check such information from the credit bureaus. Mixed use property has numerous benefits some of them are highlighted below.
Business merchants that invest in mixed-use property will charge higher rent to commercial components, and this will lead to increased return on investment as opposed to a single use property. In most cases commercial rents that will be charged on mixed-use property range from 6 to 12 percent compared to residential property that change from 1 to 4 percent which is low. Mixed use buildings expose different businesses to customers since there is a lot of foot traffic within the buildings. Since the mixed-use property is a big investment, most service providers give providers will give priority to such areas compared to the ones that are in stand-alone places. More people are likely to live in buildings that are upgraded and maintained since they look presentable. These types of property are characterized by the presence of different amenities so people can access essential service such as medical facilities, libraries with ease. People will save lots of money since the services are only a walking distance.
Mixed use property leads to more efficient resource use since commercial and residential tenants occupy one building. Mixed use property will also to diversify investors’ portfolio. Investing in real estate has its downfall, but the risks are reduced when people invest in mixed-use buildings. Mixed buildings lead to increased number of commercial tenants, and they are considered to be good tenants.
Mixed use property will also attract a specific demographic group especially the old and the millennial. Mixed use buildings provide urban lifestyles since they have restaurants, films which will be suitable to the younger generation while the older ones will access most of the services which are more convenient to their age. Investors in mixed-use buildings will not experience a lot of competition as compared to their counterparts in single-use buildings. Since most people are unable to invest in such ventures, the few investors can capitalize and enjoy high profits. It is important for people to consider investing in mixed-use property to enjoy the above benefits.